Update on the situation at Ozenmunaigas

 Update on the situation at Ozenmunaigas

 Astana, 9 March 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") reports on the situation at the "Ozenmunaygaz" (OMG) production unit in the city of Zhanaozen (Mangistau region).

The industrial action at the unit which began on 1 March continues. Every day from 4 to 8 March between 1.5 and 3 thousand employees, mainly engaged in servicing wells and transportation, did not come to work. However, the oil production at "Ozenmunaigaz" was not suspended. Engineering and technical personnel that provides continuous output were working.

The direct loss of daily production resulting from the action is currently assessed at 200-400 tons of oil. This is within 1% of KMG EP's consolidated daily output. The degree of impact on the annual production of the Company depends on how quickly normal operation at the production unit is restored.

KMG EP management is continuing its efforts to build a constructive dialogue with the protesters.

Please refer to the Company's website for further details.

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The total volume of proved and probable reserves, as at the end of 2008, was 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 bn barrels. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" rate.

For further details please contact us at:

«KMG EP». Public Relations (+7 7172 97 7600) Daulet ZhumadilE-mail: [email protected]

«KMG EP». Investor Relations (+7 7172 97 5433) Asel Kaliyeva E-mail: [email protected]

Pelham PR (+44207 337 15 17) Elena Dobson E-mail: [email protected]

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